CarMax vs SHIFT Which Is Stronger?

CarMax and SHIFT are two companies in the automotive industry that offer services for buying and selling used cars. CarMax is a well-established company with a strong presence in the market, while SHIFT is a newer player in the industry. Both companies have experienced fluctuations in their stock prices due to various factors such as market trends, competition, and economic conditions. Investors interested in the automotive sector should consider factors such as growth potential, market share, and financial performance when comparing CarMax and SHIFT stocks.

CarMax or SHIFT?

When comparing CarMax and SHIFT, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CarMax and SHIFT.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CarMax has a dividend yield of -%, while SHIFT has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CarMax reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, SHIFT reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CarMax P/E ratio at 32.48 and SHIFT's P/E ratio at 55.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CarMax P/B ratio is 2.19 while SHIFT's P/B ratio is 9.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CarMax has seen a 5-year revenue growth of 0.99%, while SHIFT's is 5.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CarMax's ROE at 6.83% and SHIFT's ROE at 17.69%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $86.57 for CarMax and ¥17810.00 for SHIFT. Over the past year, CarMax's prices ranged from $65.83 to $88.22, with a yearly change of 34.01%. SHIFT's prices fluctuated between ¥8594.00 and ¥36090.00, with a yearly change of 319.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.